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Price of milk, butter and cheese to soar

HOLY cow -- the price of milk has gone up 11pc adding further pain for the Irish consumer.

The massive jump in the price has pushed up the price of butter, cream and cheese to an alarming rate.

Under pressure retailers were told of the increases in a letter from Glanbia yesterday.

One told the Herald: "This is quite disgusting, and an increase way above the rate of inflation.

"These people are going to put us all out of business."

Customers have already adjusted their household budget to take account of a jump in food products, including a 5.1pc rise in the price of bread and 6.4pc in gas, along with utility bills and mortgage rates, driven by the interest rate hike.

The Central Statistics Office (CSO) revealed a wide range of consumer prices throughout March, driven by a jump in global wheat prices and the cost of oil in the Middle East. Now one of Ireland's largest producers Glanbia has announced that due to the increases at farmgate prices paid to milk suppliers since the start of 2010, the cost of dairy will significantly jump.

"These increases have been absorbed to date, however it has become imperative that we recover costs in order to continue supply in the long term," the group said in a statement.

"To offset the increased costs we have no choice but to implement price increases effective from May 9."

Cream and milk prices are being pushed up by 11.2pc, butter by 9.5pc and cheese by 4.5pc, Glanbia confirmed.